Gold Plunges: Australia the New Safe Haven
Gold rout continues in the Asian trading session and currently trading between the 1071 and 1083 price level, the precious metal reached a new low in 5 years on Monday when it touches 1071.73. The situation keeps getting worse without a possible solution in sight, gold has declined for 10 straight days, the longest losing streak for the metal since September 1996.
Many analysts have attributed the decline in gold to the strong U.S dollar which hurt commodities measured in dollars. Most overseas investors find it too expensive due to the strong American dollar, hence, a drop in demand. On Thursday dollar dropped against major currencies, which enable gold to tick up 0.2 percent to $1,093 an ounce.
In Australia the story is different, while spot gold tumbled 16 percent in the past year, the precious metal’s price in Australian dollar has surged about 8 percent. S&P/ASX All Ordinaries Gold Index of 21 Australian miners have gained 12 percent so far this year as the benchmark Philadelphia Stock Exchange Gold and Silver Index slumped 31 percent.
The suppliers in Australia, the second largest producer of Gold in the world are benefiting from selling the metal for a strong U.S dollar while costs of production are denominated in weaker local currency. Australian dollar plunged to 6 year low on Friday.
William Kaye, a Hong Kong based owner of The Pacific Group Ltd. said Australian miners are profiting from the weaker Australian dollar against the strong U.S dollar, this would make Australian miners attractive to investors. Australia’s largest producer, Newcrest Mining Ltd., said its margin increased 13 percent in the year through June as it increased output.
A Sydney-based senior economist at Westpac Banking Corp., Justin Smirk, said investors may remain wary of weaker bullion prices because there is no guarantee that they will get a movement in the Aussie dollar that will equal the movement of the rise or fall of the gold price.
On Friday, Australian dollar fell 0.8 percent to 72.94 U.S. The Australian gold index dropped 5.4 percent as gold hit the lowest since 2010. The Australian index rose 2.6 percent on Thursday as Philadelphia Index fell 4.7 percent.
Nigeria and China Explore Ways to Enhance Bilateral Relations as Trade Value Drops by N37.3bn in 2022
Nigeria and China have long maintained a cordial trade relationship, but recent statistics show a decline in bilateral trade by N37.3bn ($81m) to $219m in 2022 from the previous record of $300m in 2021.
Despite this decline, both countries are making efforts to enhance bilateral relations and explore ways to increase trade value.
Wang Yingqi, the Minister and Counsellor for Economic and Commercial Affairs at the Embassy of the People’s Republic of China, led a delegation from the Chinese Chamber of Commerce to the Executive Secretary of the Nigerian Investment Promotion Commission in Abuja. During the meeting, he emphasized the need to improve bilateral relations and increase trade value.
Yingqi stated that the Chinese government has invested in the Lekki Free Trade Zone through a Public-Private Partnership with the Nigerian and Lagos State governments.
He further highlighted that the total investment from Chinese companies to Nigeria in 2022 was around $219m, while in 2021, it was $300m.
Responding to the delegation, the Executive Secretary of the Nigerian Investment Promotion Commission, Saratu Umar, reiterated the federal government’s commitment to deepening business partnerships with the Chinese government.
She emphasized the need for Nigeria to start exporting finished goods to China rather than just importing raw materials.
Umar stated, “We want the Chinese business environment to identify areas of interest, whether it is agriculture or solid minerals, so Nigeria can integrate it into the Investment Masterplan.”
Dollar to Naira Exchange Rate Today March 22, 2023
As of March 22, 2023, the dollar to naira exchange rate is 1 USD to 755 NGN at the black market. This means that for every one US dollar, you can exchange it for ₦755, Investors King reports.
This digital business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.
This rate is subject to change depending on a variety of factors including global economic trends, political developments, and market fluctuations. However, you can buy and sell 1 USD at ₦755 and ₦750 as of the time of writing today.
What is the current exchange rate of the dollar to naira in the black market today?
According to Investors King, as of the time this report was filed, a dollar can be purchased at the Lagos parallel market (black market) for N755 and sold for N750.
|Dollar to Naira (USD to NGN)||Black Market Exchange Rate Today|
Investors King understands that although the dollar to naira opened at N755 per $1 in the parallel market today, the Central Bank of Nigeria (CBN) does not acknowledge the parallel market, also referred to as the black market. The CBN has instructed individuals in need of forex to approach their bank as the I&E window is the sole recognized exchange.
On Wednesday, March 22nd, 2023, individuals in the black market purchased one US dollar for N750 and sold it for N755. This shows that the value of the Naira has declined slightly to Wednesday, March 21st, 2023, when the local currency was exchanged at N748 and sold it for N753.
To stay informed about the dollar to naira exchange rate, there are a number of reliable sources that you can turn to. Here are some tips for staying up-to-date:
- Check the Central Bank of Nigeria’s website: The CBN is responsible for regulating the country’s monetary policy and is a reliable source for the latest exchange rates. You can check their website regularly for updates.
- Follow financial news outlets: Financial news outlets such as Investors King, Bloomberg, Reuters, and CNBC provide regular updates on the global currency markets, including the dollar to naira exchange rate.
- Use online currency converters: There are a number of online currency converters that allow you to quickly and easily check the exchange rate between the dollar and the naira.
- Follow social media accounts of financial experts: Following social media accounts of financial experts such as analysts, economists, and financial advisors can give you valuable insights into the latest trends in the currency markets.
By staying informed about the dollar to naira exchange rate, you can make informed decisions when buying or selling foreign currencies. Whether you are a business owner looking to trade in foreign currencies or an individual looking to invest in the currency markets, knowledge of the latest exchange rates is key to success. Keep these tips in mind and stay informed about the latest trends in the global currency markets.
Unilever Nigeria to Reposition Products For Expansion
A renowned consumer goods manufacturer, Unilever Nigeria Plc has disclosed plans to reposition its products and expand its business for sustainability.
Unilever Nigeria Plc produces and markets consumables that include foods, household, beauty, cleansing amongst other goods, Investors King reports.
In a corporate notice signed by its Secretary, Abidemi Ademola sent to the Nigerian Exchange Limited, the company stated that its home care and skin cleansing markets will cease to exist while a rebranding takes place for increment in profit.
According to the company, the change in its business model became expedient to fast track the organisation’s growth and further satisfy the needs of their customers, employees, shareholders and other stakeholders.
Ademola explained that the new strategy would involve digital measures to simplify the business process while chances of devaluation will be avoided and reduced in the market upgrade.
The company had already visualised the extinction of the home care and skin cleansing categories in 2023 for the general growth of the firm and particularly to build a sustainable business.
The statement read in part, “this will involve repurposing the portfolio by exiting the home care and skin cleansing categories to concentrate on higher growth opportunities.
“Strengthening business operations with measures to digitise and simplify processes; and focusing more on business continuity measures that reduce exposure to devaluation and currency liquidity in our business model.”
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